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Regional wage convergence in Spain 1850-1930

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  • Roses, Joan R.
  • Sanchez-Alonso, Blanca

Abstract

Real wages PPP adjusted are used to analyse labour market integration in Spain. In contrast to earlier research analysing migration and nominal wages rates, our research seems to indicate that a well-integrated labour market had emerged in Spain by 1914 and substantial wage convergence happened from 1850 to 1914 with low rates of interna l migration. The shock of World War I and the subsequent globalisation backlash appear to disrupt this integrated market provoking a spectacular increase in wage differentials across regions and provinces. However, real wage convergence across Spanish provinces resumed powerfully over 1920s, this time accompanied by high internal migrations.

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Bibliographic Info

Article provided by Elsevier in its journal Explorations in Economic History.

Volume (Year): 41 (2004)
Issue (Month): 4 (October)
Pages: 404-425

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Handle: RePEc:eee:exehis:v:41:y:2004:i:4:p:404-425

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Web page: http://www.elsevier.com/locate/inca/622830

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References

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  1. George R. Boyer & Timothy J. Hatton, 1997. "Migration and Labour Market Integration in Late Nineteenth-Century England and Wales," Economic History Review, Economic History Society, vol. 50(4), pages 697-734, November.
  2. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
  3. Collins, William J., 1999. "Labor Mobility, Market Integration, and Wage Convergence in Late 19th Century India," Explorations in Economic History, Elsevier, vol. 36(3), pages 246-277, July.
  4. Vara, Tomás Martínez, 1997. "Una estimación del coste de la vida en Santander, 1800–1860," Revista de Historia Económica, Cambridge University Press, vol. 15(01), pages 87-124, March.
  5. Jeffrey G. Williamson, 1992. "The Evolution of Global Labor Markets Since 1830 Background Evidence and Hypotheses," NBER Historical Working Papers 0036, National Bureau of Economic Research, Inc.
  6. Levine, Ross & Renelt, David, 1991. "A sensitivity analysis of cross-country growth regressions," Policy Research Working Paper Series 609, The World Bank.
  7. Williamson, Jeffrey G., 1996. "Globalization, Convergence, and History," The Journal of Economic History, Cambridge University Press, vol. 56(02), pages 277-306, June.
  8. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  9. Robert J. Barro, 1995. "Inflation and Economic Growth," NBER Working Papers 5326, National Bureau of Economic Research, Inc.
  10. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650592, December.
  11. S Nchez-Alonso, Blanca, 2000. "Those Who Left and Those Who Stayed Behind: Explaining Emigration from the Regions of Spain, 1880 1914," The Journal of Economic History, Cambridge University Press, vol. 60(03), pages 730-755, September.
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Citations

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Cited by:
  1. Julio Martinez-Galarraga, 2010. "The determinants of industrial location in Spain, 1856-1929," Working Papers in Economics 244, Universitat de Barcelona. Espai de Recerca en Economia.
  2. Elena Vakulenko, 2014. "Does migration lead to regional convergence in Russia?," HSE Working papers WP BRP 53/EC/2014, National Research University Higher School of Economics.
  3. Enflo, Kerstin & Rosés, Joan, 2012. "Coping with Regional Inequality in Sweden: Structural Change, Migrations and Policy, 1860-2000," Lund Papers in Economic History 122, Department of Economic History, Lund University.
  4. Herranz-Loncan, Alfonso, 2007. "Infrastructure investment and Spanish economic growth, 1850-1935," Explorations in Economic History, Elsevier, vol. 44(3), pages 452-468, July.
  5. Leandro Prados de la Escosura & Joan R. Rosés, 2008. "Proximate causes of economic growth in Spain, 1850-2000," Working Papers in Economic History wp08-12, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  6. Leandro Prados de la Escosura, 2006. "Growth And Structural Change In Spain, 1850-2000," Working Papers in Economic History wp06-05, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  7. Daniel A. Tirado & Jordi Pons & Elisenda Paluzie, 2003. "Industrial agglomerations and wage gradients: the Spanish economy in the interwar period (?)," ERSA conference papers ersa03p113, European Regional Science Association.
  8. Jordi Pons Novell & Javier Silvestre & Daniel Aurelio Tirado Fabregat & Elisenda Paluzie Hernandez, 2004. "Were Spanish migrants attracted by industrial agglomerations? An analysis for the interwar years in the light of the new economic geography," Working Papers in Economics 121, Universitat de Barcelona. Espai de Recerca en Economia.

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